Security software vendors in the Asia-Pacific region tend to invest more in attracting small and medium-sized businesses (SMBs), according to a recent report released by international data tracking company IDC.

Big enterprises have always been the focus of security software vendors as large projects are often the most lucrative. However, this segment is becoming very competitive with few untapped opportunities.

According to the report, vendors are finding it increasingly difficult to differentiate their offerings, given the dearth of technological breakthroughs in the last 12 months, resulting in intense price competition, and subsequently declining margins.

"The increasing sophistication of the security needs of SMBs, especially in the more IT-mature countries, combined with rising security risks that accompany the increasing adoption of broadband Internet access, are driving these companies to invest to protect their information infrastructure," said Willie Low, IDC's market analyst of Asia-Pacific software research.

"Vendors recognize this trend and realize that this is where the next wave of opportunities will come from," he added.

Vendors have introduced a flurry of SMB-tailored security solutions in the past 18 months, said the report.

Solutions that come with bundled features, are easy to deploy, and take into account the resource and technology constraints of SMBs have been well-received by the market.

In Singapore, the Infocomm Security Masterplan will soon be launched.

This Masterplan is a national strategic roadmap to develop a secure cyber environment for government, businesses and individuals.

It will increase awareness and the government is likely to improve the infrastructural support to encourage bigger investments in IT security.

Meanwhile, IDC estimated that the security software market in the Asia-Pacific region, excluding Japan, hit US$688.3 million in 2004, an increase of more than 20 percent from 2003.

Looking forward, IDC forecasts the market will reach US$1.37 billion in 2008, a compound annual growth rate of 19 percent.

Concerns regarding regulatory compliance, requirements for a more holistic security management software and alignment of business with IT security underpinned demand in 2004.

The report also shows the largest market in the region is Australia, followed by South Korea and China.

"Many enterprises cite regulatory compliance as the primary motivation for higher IT security software spending," said Low.

"Although the data protection and privacy regulations in question originated from the United States and Europe, multinationals are rolling out the compliance measures across their worldwide operations."

(China Daily February 21, 2005)